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Category Archives: Securities Class Actions

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Do You Really Think Class Actions Are A Thing Of The Past

Posted in Arbitration, Broker-Dealer Regulation, FINRA Enforcement, Public Customer Arbitrations, Securities Class Actions

The prudent answer to this question should be probably not, but we can hold out hope. A FINRA panel recently upheld a class action exclusion in a broker-dealer agreement to arbitrate contained in its customer agreement.  In other words, the provision prohibits a customer from seeking class action status against the broker-dealer, forcing all customer complaints… Continue Reading

You May Be Able to Dodge the Securities Fraud Bullet if You Are a Corporate Official

Posted in Securities Class Actions, Securities Litigation

The U.S. Court of Appeals for the Third Circuit found that two founders of a metal components business were not liable in a securities fraud lawsuit although both had improperly looted millions of dollars of corporate assets. See Gallup v. Clarion Sintered Metals Inc., 3d Cir., No. 11-4004, 7/26/12, and http://federal-circuits.vlex.com/vid/paul-gallup-clarion-sintered-metals-390620030. Essentially, the investors had… Continue Reading

Ernest Badway Appears on CNBC-India to Discuss Securities Class Action Dismissal

Posted in Accounting Standards, Securities Class Actions, Securities Litigation

Ernest Badway, recently, appeared on one of the top-rated business programs in India, The Firm, to discuss United States District Court Judge Barbara Jones’ dismissal of a major securities class action involving a major, Indian based, multi-national company, Satyam.  The Firm airs on CNBC-India.  The video is in two parts.  Please click ‘Next’ icon on the bottom right… Continue Reading

Game Changing Off-Label Marketing Decision Has Implications for Related Securities Lawsuits

Posted in Compliance and Supervision, Corporate Governance, Federal and State Criminal Activities, Internal Investigations, Securities Class Actions, Securities Litigation

The Second Circuit ruled that the First Amendment trumps the federal government’s enforcement off-label marketing prohibitions. The decision could change the face of pharmaceutical compliance and limit criminal, regulatory, and civil exposure to government and private plaintiffs.

Secret Witnesses in Securities Litigation

Posted in Securities Class Actions, Securities Litigation

Over the years and, most certainly, since the passage of the Private Securities Litigation Reform Act, plaintiffs’ lawyers have used confidential witnesses in their pleadings.  Plaintiffs’ lawyers, typically, do not name these witnesses in their complaints to avoid motions to dismiss and other legal actions.  However, over the last several years, court decisions have become increasingly critical of… Continue Reading


Posted in Arbitration, Dodd-Frank, SEC Enforcement, Securities Class Actions

In response to the Supreme Court’s decision in Morrison v. National Australia Bank where the Supreme Court said that there was no private right of action for lawsuits that involved transnational fraud, the SEC has taken a position that has angered some.  As many know, the Dodd-Frank Act confirmed the SEC’s jurisdiction as it relates… Continue Reading


Posted in Dodd-Frank, Securities Class Actions

We previously blogged on the Argentina bond case.  See http://securitiescompliancesentinel.foxrothschild.com/securities-class-actions/argentinean-bond-dispute-has-gotten-hot/index.html.  Now, to update our readers, the United States District Court for the Southern District of New York has vacated the attachment orders previously placed on the Republic of Argentina’s assets held at the Federal Reserve Bank of New York.  The Court indicated that it was… Continue Reading

Condo Rental Programs Are Not Investment Contracts

Posted in JOBS Act, Securities Class Actions, Securities Legislation, Securities Registration

In an intriguing case out of the United States District Court for the Western District of Missouri, a plaintiff’s purchase of condominium units with an option to participate in the rental program did not involve an investment contract under either the federal or Missouri securities laws.  The court, thus, dismissed the plaintiff’s securities claims.  The… Continue Reading


Posted in JOBS Act, Securities Class Actions

Recently, the United States District Court for the Eastern District of Washington attacked the attorney’s fees and expenses filed by plaintiff’s attorneys in a securities fraud suit.  The judge was not pleased that the attorneys had submitted a six figure bill with expenses and disbursements that it considered excessive.  In particular, the court sited a… Continue Reading

PSST!!! Want to Save Money on Your Legal Bills? Read on. . .

Posted in CFTC Enforcement, Federal and State Criminal Activities, FINRA Compliance, FINRA Enforcement, Intra-Industry Arbitrations, NFA Enforcement, PCAOB Enforcement, Public Customer Arbitrations, SEC Compliance, SEC Enforcement, Securities Class Actions, State Enforcement

Late last week, one of my colleagues sent me an e-mail where he copied 8 other people, half of them I could not identify if my life depended upon it.  I then heard about the person who had a Twitter account with over 17,000 follwers, and was now being sued by his former employer over ownership of the account–… Continue Reading

Argentinean Bond Dispute Has Gotten Hot

Posted in Securities Class Actions, Securities Registration

Buenos Aires, it is not, but the United States Supreme Court recently requested that the United States Solictor General provide an opinion involving a dispute between certain parties over the proprietary of certain Argentinean bonds. The dispute involves funds belonging to the Argentinean central bank held in the United States.  The United States Court of Appeals for the… Continue Reading

Slow IPO Market Means Fewer Securities Lawsuits

Posted in Compliance and Supervision, Financial Industry Trends, Securities Class Actions, Social Media

If you had asked me yesterday whether there were a lot of securities lawsuits last year, I would have said, “Oh, absolutely.”  And I would have been absolutely wrong.  Lawsuits were up in 2011 compared to 2010, but still below the recent average.  As the NYTimes reports, according to a new report by Stanford Law and Cornerstone Research, “188… Continue Reading

Could the FPCA be the Next Battleground for Private Rights of Action?

Posted in Financial Industry Trends, Public Customer Arbitrations, Securities Class Actions

A congressman recently introduced a bill that would create a private right of action against foreign companies for violations of the Foreign Corrupt Practices Act.  This would allow for companies to sue foreign companies for any damages stemming from the violation of this law.  In such an action, the company would merely allege that the… Continue Reading

Securities Podcast with Ernest Badway

Posted in Broker-Dealer Regulation, CFTC Compliance, CFTC Enforcement, Compliance and Supervision, Federal and State Criminal Activities, Financial Industry Trends, FINRA Compliance, FINRA Enforcement, Hedge and Private Equity Funds, Intra-Industry Arbitrations, Investment Adviser Regulation, NFA Enforcement, PCAOB Enforcement, Public Customer Arbitrations, Registered Representatives, Sarbanes-Oxley, SEC Enforcement, Securities Class Actions, State Enforcement

Thought you might be interested in a recent podcast I did concerning my securities law practice.  http://web.me.com/cordpar/Client_Development_Tips/Law_Consulting_Coaching_Podcast/Entries/2011/10/28_Developing_a_Securities%2C_White_Collar_and_Complex_Litigation_Practice.html

Say What?! Derivative Suit Dangers from Say-On-Pay

Posted in Compliance and Supervision, Dodd-Frank, SEC Compliance, Securities Class Actions

While the overwhelming majority of the advisory say-on-pay votes required by Dodd-Frank succeed, a number of the boards surprised by a “nay-on-pay” vote now face shareholder derivative lawsuits.  So far this year, negative say-on-pay votes have sparked nine derivative lawsuits, and some commentators expect these numbers to rise in 2012.  Corporate boards – especially those… Continue Reading

A Framework Proposed for the Uniform Fiduciary Duty

Posted in Broker-Dealer Regulation, Compliance and Supervision, FINRA Compliance, Investment Adviser Regulation, Public Customer Arbitrations, Registered Representatives, SEC Compliance, Securities Class Actions

In January 2001, the Securities and Exchange Commission (“SEC”) recommended the implementation of a uniform fiduciary duty standard for broker-dealers and registered investment advisors. Significant debate has followed regarding the potential parameters and scope of such a duty. Recently, the Securities Industry and Financial Markets Association (“SIFMA”), a lobbying group for large broker-dealers, proposed a… Continue Reading